Hydrocarb Energy Corp. (fka HECCQ)

Key Investment Highlights

• 75% of invested capital directly from CEO and insiders
• Revenue in each of the last two years has more than doubled
• Existing assets to generate cash and fund continued growth
• Most recent year-over-year revenue growth rate of 540%
• More than doubled oil and gas production in the last two years
• nvests for strong financial returns, not just barrels of oil
• Not bound to any geographical location or operational strategy

Strategic Growth

• Pursue additional acquisitions and merger opportunities to generate exponential growth potential and increase shareholder value
• Seek-out and consider high-potential international projects with significant returns
• Continue to grow revenue, maximize cash flow and profits, maintain tight controls, and leverage existing assets to generate cash and fund continued growth
• Provide better visibility, liquidity, and stability to shareholders and financial partners by pursuing listing on major U.S. exchange(s)
• Increase production beyond 1,000 boe/daily within 12 months; achieve 2,500 boe/daily within 24 months
• Add reserves by continuing active drilling program

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The 4 fields located in the shallow waters of Galveston Bay and Trinity Bay (located North of Galveston Island) were purchased by the company in February 2011. The majority of these fields were originally developed and the facilities built by Exxon. Production from the fields is focused almost entirely on the Frio interval which has been the most prolific in the region. The company also operates several offshore production and processing platforms as well as pipelines that carry the produced gas and liquids to shore-based production and processing facilities where they are either disposed of or sold. Currently, the fields are receiving a full geological and engineering analysis to determine future projects including, reworks, recompletions, plugging, offsets, and potential new drilling locations. A new well was recently drilled in the Fishers Reef Field, Trinity Bay and is currently awaiting completion.

Depth Range: 8,000-10,000 feet

Average Working Interest: 90%

Average NRI: 70%

Operator: Galveston Bay Energy LLC (wholly owned subsidiary of Duma Energy Corp.)

Welder Ranch, Texas

The Welder Ranch property is operated by Carter E&P, a private Texas operating company owned by Vice President Steven Carter. The property has been a productive asset of the company since 2006. In late 2011, production and cash flow were increased through a recompletion operation to the Patrick Welder #5 well.

Depth Range: 5,000-8,000 feet Working Interest: 100%
NRI: 75%
Operator: Carter E&P, LLC (company owned and operated by the VP, Steven Carter)

Janssen, Texas

Non-operated

Depth Range: 3,000-11,700 feet
Working Interest: 3.0%
NRI: 2.25%
Operator: Rockwell Energy

Markham City North Field, Illinois

Duma Energy's team of geologists and engineers identified and developed the Markham City North project. The project was marketed to potential operators and financial partners with experience in the Illinois Basin. Core Minerals decided to become the operator and invest a minimum of $1.35 million into the development and testing of the field. Duma Energy is carried for 10% working interest until Core has recouped their initial $1.35 million investment. After that milestone is achieved, the interest rises to 25% and costs will be shared. Currently, the field is in the early phase of the pilot waterflood testing.

Depth Range: 2,000-4,000 feet
Working Interest: 10% carried (will rise to 25% upon cost recovery by operator)
NRI: 8.2%
Operator: Core Minerals

Republic of Namibia, Africa

Duma Energy recently acquired as a wholly owned subsidiary Namibia Exploration, Inc. (NEI), through which Duma Energy now holds 39% of a 5.3 million-acre onshore petroleum concession in the Republic of Namibia. The concession is located in the Owambo Basin, a large African cratonic basin situated in the northern part of Namibia. The Owambo Basin appears to contain the major elements required to produce a major petroleum system: source rock, reservoir rock, reservoir trap, and reservoir seal.